IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v237y2024ipas0960148124015945.html
   My bibliography  Save this article

Using DNPV to determine the economic viability of residential photovoltaic systems in Germany: Is the investment still worth it?

Author

Listed:
  • Kraemer, Carlo

Abstract

The conditions for photovoltaic investments have changed significantly in recent times. Declining subsidies and rising investment costs make these investments less attractive. In addition, electricity price uncertainty has risen sharply, making the economic benefit of using self-produced electricity from residential photovoltaic systems risky. This paper provides a novel framework to determine the financial attractiveness of such investments using the Decoupled Net Present Value (DNPV) method, which allows for a systematic and consistent consideration of the individual risks inherent in these investments. Furthermore, an extensive survey of the relevant current market parameters is performed to validate the common opinion that residential photovoltaic investments are generally advantageous. It turns out that in the current market environment in Germany, residential photovoltaic systems are not economically viable under most conditions. The system evaluated in this case study with a common size of 10 kWp leads to a negative DNPV of -1,664 €. This results in a compelling need for action for political decision-makers in order not to jeopardize the ambitious goals for the expansion of power generation from renewable energy sources.

Suggested Citation

  • Kraemer, Carlo, 2024. "Using DNPV to determine the economic viability of residential photovoltaic systems in Germany: Is the investment still worth it?," Renewable Energy, Elsevier, vol. 237(PA).
  • Handle: RePEc:eee:renene:v:237:y:2024:i:pa:s0960148124015945
    DOI: 10.1016/j.renene.2024.121526
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148124015945
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2024.121526?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:renene:v:237:y:2024:i:pa:s0960148124015945. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.